VIDEO: Vitol Protests GPA’s Decision to Grant a More Than 300% Increase to Petrobas to Keep Delivering Fuel to Guam

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Guam – Another wrench-in-the-works for the Guam Power Authority’s bid to award a new fuel delivery contract.

It was just last month that GPA announced that it was starting from scratch and re-bidding the contested 3-year fuel contract.The deadline for submitting new bids in this second round is this Friday.

In the first time-around, Vitol won the initial bid. But the contract negotiations were de-railed when rival bidder, Korea’s Jier Shin, filed a protest arguing its bid was lower.

Vitol followed with its own protest against GPA’s decision to extend its contract with Petrobras. 

Vitol says GPA never responded to that protest, so they’ve now taken it to the Office of Public Accountability. The Singapore based company doesn’t like the more than 300% increase GPA is now paying Petrobras in order to get convince them to extend their fuel delivery contract which expired in February. 

READ the protest filed with the OPA HERE

  

The Petrobras agreement expired in February. In order to get them to agree to a 6 month extension of that contract, while the initial protests of Vitol and Jier Shin played out, GPA agreed to Petrobras’ higher fuel delivery prices.

Substantially higher according to the Petrobras protest which states that Petrobras was allowed to raise its contractual rates for fuel delivery by 300% for low sulfur fuel and 450% for high sulfur fuel. They call the extension deal “a story of unethical and bad faith procurement practices.” 

According to their protest, Vitol argues that all procurement actions should have been suspended in February, including the extension with Petrobras, when Jier Shin filed its first protest.